When should a contractor be licensed? Under Michigan law, all contractors offering to do work which totals $600 or more in
labor and materials must be licensed. 

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Why is this important? Homeowners are more likely to be victimized as a result of using unlicensed builders on their residential construction projects.

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Consumers are also warned to be cautious about any builder who asks to be paid in cash or requires total payment up front. Hiring unlicensed builders also exposes the consumer to potential liability issues that could be very costly.